Iowa Supreme Court Attorney Disciplinary Board v. Kathryn S. Barnhill
2014 Iowa Sup. LEXIS 61
| Iowa | 2014Background
- Kathryn S. Barnhill, admitted 1989, faced disciplinary charges based on conduct in four separate matters (Jerry’s Homes, Williams, Public Safety Group (PSG), and Everly) occurring 2001–2009; Board filed complaint in 2012 and parties stipulated facts and a 60‑day suspension recommendation.
- Jerry’s Homes: Barnhill filed a class action that included her former client Jerry’s Homes and homeowners; she made factual representations about class members’ reliance that were false, pursued claims against a corporate officer without basis, and was sanctioned $25,000 in related civil proceedings.
- Williams: Barnhill entrusted client funds to an employee with a known prior embezzlement; trust account records were deficient, funds were misapplied, and a jury found Barnhill liable for fraud and awarded compensatory and punitive damages.
- PSG: Barnhill failed to comply with Iowa Supreme Court orders to serve notice on an assignee and the IRS, causing delays and additional court action.
- Everly: Barnhill pursued a certiorari action against a supplier (Musco) after dismissing the government defendants; Iowa courts found no authority for the claim and imposed sanctions for maintaining the suit.
Issues
| Issue | Plaintiff's Argument (Disciplinary Bd.) | Defendant's Argument (Barnhill) | Held |
|---|---|---|---|
| Misrepresentation to tribunal (pre‑2005 rule DR 1‑102(A)(4)) | Barnhill knowingly or recklessly made false factual statements about class members’ reliance in Jerry’s Homes | Barnhill conceded false statements but claimed zealous advocacy, not knowing falsity | Violated — statements showed reckless disregard for truth |
| Conflict of interest / dual representation (DR 5‑105) | Barnhill represented Jerry’s Homes and homeowners without adequate waivers or independent advice | Barnhill asserted waivers were obtained and disclosed | Violated — potential conflict existed and record did not show valid informed waivers |
| Safekeeping & supervision of nonlawyer (Iowa R. of Prof. Conduct 32:1.15; 32:5.3; Ct. R. ch.45) | Barnhill failed to safeguard Williams’s funds, kept inadequate records, and failed to supervise an employee with prior embezzlement | Barnhill argued efforts to supervise and later corrective measures | Violated — failures in trust accounting and supervision proved; employee misconduct imputed to Barnhill |
| Conduct prejudicial / obedience to court orders & competence (various rules) | Barnhill pursued unwarranted claims (Jerry’s Homes, Everly), disobeyed court orders (PSG), and acted incompetently | Barnhill sometimes claimed misunderstanding or zealous advocacy; corrected some misstatements | Violated (multiple rules) — continued pursuit of unwarranted claims, failure to obey orders, and lack of competence proven |
Key Cases Cited
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Stowe, 830 N.W.2d 737 (Iowa 2013) (standard of de novo review and burden in disciplinary proceedings)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. McCarthy, 814 N.W.2d 596 (Iowa 2012) (definition of convincing preponderance)
- Barnhill v. Iowa Dist. Ct., 765 N.W.2d 267 (Iowa 2009) (civil sanctions and findings relating to Jerry’s Homes)
- Everly v. Knoxville Cmty. Sch. Dist., 774 N.W.2d 488 (Iowa 2009) (authority and sanctions regarding certiorari claim against supplier)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Netti, 797 N.W.2d 591 (Iowa 2011) (examples of discipline for misrepresentations and trust/accounting failures)
- Iowa Supreme Ct. Disciplinary Bd. v. McGinness, 844 N.W.2d 456 (Iowa 2014) (discipline for falsified certificates of service; discussion of honesty as baseline)